Wage-setting in Russia: The Role of Industry-level Tariff Agreements

Abstract

In Russia, the wage setting mechanism is still under transformation. The paper analyzes the role of industry-level tariff agreements in wage setting process. It examines the procedure of industry-wide negotiations, main institutional characteristics of the agreements concluded by social partners, the interrelations of industry-level agreements, on the one hand, with the upper level agreements (on federal and regional levels) and with company-level bargaining, on the other hand. The peculiarities of wage setting on the industry level and the enforcement of agreements reached between employer organizations and trade unions are also studied. The analysis of economic consequences of Russian system of wage determination is presented.

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